Internet companies that are part of the Tech IPO Pipeline are a diverse lot on many fronts. On the industry front, they range from cloud storage vendors to eCommerce sites. On the valuation front, they range from 9-figure to 11-figure valuations. And on the valuation multiples front, their valuation multiples are also quite varied as can be seen below with some coming in at more than 20x.
All of the Tech IPO Pipeline companies with 20x+ P/S ratios fall under the Internet Software & Services industry and stand in sharp contrast to the multiples that eCommerce companies in the Pipeline are seeing. Specifically, average P/S ratios for Tech IPO Pipeline eCommerce companies stand at 5.9x while Internet Software and Services companies in the Tech IPO Pipeline are notably higher with a 13.2x average.
In addition, as shown below, the range of P/S multiples of Tech IPO Pipeline companies in the Internet Software & Services industry is significantly wider than that of the eCommerce space. Interestingly, the eCommerce companies in the Pipeline, despite their larger size, presumably faster growth and slightly more established brands, are, on average, trading right at the typical eCommerce exit valuation multiple of 5.8x.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity